An EPQ model with setup cost and process quality as functions of capital expenditure

Hou, Kuo-Lung

doi:10.1016/j.apm.2006.03.034

Cited by 69 publications

(40 citation statements)

References 22 publications

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“…He solved the proposed model for special unit production cost functions and illustrated the results with a numerical example (Khouja 2005). Hou (2007) considered an EPQ model with imperfect production processes, in which the setup cost and process quality are functions of capital expenditure. Hariga (1996) developed optimal inventory lotsizing models for deteriorating items with general continuous time-varying demand over a finite planning horizon and under three replenishment policies.…”

Section: Literature Reviewmentioning

confidence: 99%

Developing EPQ models for non-instantaneous deteriorating items

Ghasemi

2015

J Ind Eng Int

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In this paper, the classical economic production quantity (EPQ) model is developed for non-instantaneous deteriorating items by considering a relationship between the holding cost and the ordering cycle length. Two models are developed. First, the proposed model is considered when backorders are not permitted and this condition is waived for the second case. The cost functions associated with these models are proved to be convex and an algorithm is designed to find the optimum solutions of the proposed model. Results show that the relationship between holding cost and ordering cycle length has a significant impact on the optimal lot size and total cost in the EPQ model. Numerical examples are presented to demonstrate the utility of the models.

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Section: Literature Reviewmentioning

confidence: 99%

Developing EPQ models for non-instantaneous deteriorating items

Ghasemi

2015

J Ind Eng Int

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“…By using geometric programming, Leung [14] proposed an EPQ model with a flexible and imperfect production process. Hou [15] considered an EPQ model with imperfect production processes, in which both the process quality and the setup cost are dependent on capital expenditure. Sana [16] presented an EPQ model for items with the imperfect quality, in which the amount of the defective items produced becomes more as the rate of production increases due to improper distribution of raw materials, machinery problems, and so on.…”

Section: Introductionmentioning

confidence: 99%

EPQ models for items with imperfect quality and one-time-only discount

Zhou

Chen

et al. 2015

Applied Mathematical Modelling

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a b s t r a c tIn developing countries with many OEMs (Original Equipment Manufacturer), selfproducing companies sometimes face a one-time-only discount for the same products offered by the OEMs. Making such a special order from the OEM may or may not be beneficial to the manufacturer who usually produces himself. In this paper, EPQ (economic production quantity) models were developed to evaluate the optimal make-or-buy decisions when such a manufacturing company faces a one-time-only discount offered by an OEM. To reflect real situation, imperfect quality of both self-produced and purchased products was also considered in the models. Conditions under which the manufacturer should place a special order from the OEM and related optimal ordering quantities were obtained. A numerical example was presented to illustrate the managerial insights of the models.

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“…Bayindir, Birbil, and Frenk (2007) considered the EPQ model with general inventory cost rate function and piecewise linear concave production costs and proposed an effective solution procedure for economic order quantity. Hou (2007) studied an EPQ model with setup cost and process quality as functions of capital expenditure and developed an efficient procedure to find the optimal production run time, setup cost, and process quality. Chiu, Wang, and Chiu (2007) investigated an EPQ model with scrap, rework, and stochastic machine breakdowns.…”

Section: Introductionmentioning

confidence: 99%